Watchdogs insist reducing regulation will not increase risk of financial crisis

Rachel Reeves has set out a package of financial services reforms she hopes will deliver a boost to the economy (Oli Scarff/PA) - (PA Wire)

Financial watchdogs have insisted that the risk of a financial crisis will not increase as a result of measures announced by the Chancellor to cut regulation in a bid to deliver growth.

Under questioning by the Commons Business and Trade Committee, a senior civil servant also confirmed the target to cut red tape by 25% will be measured in terms of costs to firms of current requirements, with a baseline set to be confirmed in 18 months.